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erastova [34]
2 years ago
14

What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in year 1, $6,9

80 in year 3, and $2,750 in year 4? the discount rate is 12.5 percent?
Business
1 answer:
goldfiish [28.3K]2 years ago
6 0
<span>Net present value is the present value of future cash inflows discounted at the expected rate of return minus the initial investment.
 Initial cash outflow = $7670
Cash inflow during Year 1 = $1280
Cash inflow during Year 2 = $0
Cash inflow during Year 3 = $6980
Cash inflow during Year 4 = $2750

Discount rate = 12.5%

NPV = (1280/1.125^1)+(0)+(6980/1.125^3)+(2750/1.125^4)-7670
NPV = (1280/1.125)+0+(6980/1.424)+(2750/1.6)-7670
NPV = 1137.778+0+4902.277+1716.811-7670
NPV=86.86</span>
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Answer:

The response options are:

B) real national income and AE.

C) AD and real national income.

D) the price level and desired consumption.

E) the price level and the equilibrium level of demand-determined national income.

The correct answer is: E) the price level and the equilibrium level of demand-determined national income.

Explanation:

Aggregate demand is the total planned or desired expenditure in the economy as a whole in a given period. It is determined by the aggregate price level and by factors such as investment, public spending and money supply.

COMPONENTS OF THE ADDED DEMAND:

Consumer expenses of domestic economies. It is the main component of aggregate demand.

Investment expenditure of companies or domestic economies. It refers to the increase in the physical capital stock, including the accumulation of stock of companies.

Purchases of goods and services for public service. Component

important, includes, for example, national defense expenses, salaries of officials, infrastructure, construction, etc.

Foreign demand (international trade). They are net exports exports - imports). It is a component of the total demand for the goods of an economy. The trade flows of a country are an engine that drives the economy to better product levels.

7 0
3 years ago
Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000
frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year       dividends

1               $2,000

2              $6,000

3            $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

7 0
3 years ago
What is the yield to maturity of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $9400 when rel
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Answer:

.5%The yield to maturity on 1-year zero-coupon bonds is currently 8.5%; the YTM on 2-year zeros is 9.5%.

Explanation:

8 0
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A company is trying to decide which service to subscribe to that will provide datasets containing demographic data on consumers.
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Answer:

The correct answer is Acxiom, Experian, Media Audit.

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Primer Company acquired an 80% interest in SealCoat Company on January 1, 2013, for $450,000 cash when SealCoat Company had comm
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Answer:

b) $665,000.

Explanation:

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Primer interest in SealCoat is 80% therefore primer is a parent company to SealCoat and is entitled to $40,000 (80%*$50,000) on SealCoat income.

Therefore, consolidated net income for 2013 is: $665,000 (625,000+40000)

3 0
3 years ago
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